Information exchange mechanisms using the Internet have been available essentially for free to end users, who until the late 1980's were primary members of academic institutions and large companies. As of 1996, good billing models have not been developed for charging end users for Internet data transmission services. Furthermore, since data transmission security mechanisms are not widely available, there have been no major initiative in developing billing mechanisms that would rely on the end user's machine to perform data transmission cost metering, herein also called postage computation. Specifically, electronic mail (e-mail) is and has been widely available as a free service. No satisfactory billing model exists for charging the customers for this service. However, due to the large bandwidths required for multimedia and value added forms of information services, it may not be possible to maintain quality services without appropriately billing subscribers for the services they use.
Two significantly different charging models are available from the two conventional predominant mechanisms of information communication;
Mailing services, such as the U.S. postal service and various private courier services, typically bill their customers before providing services. The charges are usually based on the physical distance a package is to be transported, the mail agreements between the countries of origination and destination, the physical weight or size of the packages to be delivered, speed of service, and type of packages. Telephony services bill their customers for the time the telephone connection circuits are engaged. Customers are not billed based on the information content transmitted.
Telephone services provide options for customers to pay a monthly fee to utilize a certain amount of bandwidth between the two points whenever there is a need. Billing mechanisms for on-demand bandwidth assignment are still being worked out. Higher bandwidth in telephony is needed when a large amount of information is to be transported in a short amount of time.
Facsimile machines provide another method of information exchange that depends directly on telephony service, and thus cost is metered based on the amount of time required for document transmission, the distance between sender and receiver, and the applicable telephone usage rates.
Neither mail services nor telephone services directly base their charges on information content.
Data transmission via the Internet is faster than mailing services and is almost as fast as fax service. Furthermore, it does not provide any degradation of content quality. However, on its own, it does not protect the confidentiality of the material being delivered. Advances in the technology of information encryption and user authentication have substantially lowered the risks associated with stealing information content, making it an attractive alternative to traditional mailing services.
The current billing model used by the Internet service providers is less than satisfactory. It is based on monthly charges or the connect time. These models are neither flexible, nor can they be considered fair to the ordinary user, who may face delays in transporting his information due to problems originating from the service providers.
A secure information delivery service on the Internet could potentially outperform what is currently provided by any courier document delivery service in terms of cost, speed and security. A need is felt for providing the user with a billing mechanism using a paradigm that is already well known and accepted. Preferably, such a system should be fair in allowing for cost computation based on the package size, the level of security provided, and specific billing rules that the service provider can customize. It should also allow the user to review computed costs, for user acceptance or rejection, prior to data transmission.